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As volatility increases in the oil market due to COVID concerns, what affect will increased volatility have on the premium of an oil option? Group

As volatility increases in the oil market due to COVID concerns, what affect will increased volatility have on the premium of an oil option?

Group of answer choices:

Decrease option premium price

Volatility only affects options without physical assets, like equities.

Does not have an affect

Increase option premium price

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